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on Entrepreneurship |
| By: | Graevenitz, Georg von; Weber, Richard |
| Abstract: | Entrepreneurship education has two purposes: To improve students’ entrepreneurial skills and to provide impetus to those suited to entrepreneurship while discouraging the rest. While entrepreneurship education helps students to make a vocational decision its effects may conflict for those not suited to entrepreneurship. This study shows that vocational and the skill formation effects of entrepreneurship education can be identified empirically by drawing on the Theory of Planned Behavior. This is embedded in a structural equation model which we estimate and test using a robust 2SLS estimator. We find that the attitudinal factors posited by the Theory of Planned Behavior are positively correlated with students’ entrepreneurial intentions. While conflicting effects of vocational and skill directed course content are observed in some individuals, overall these types of content are complements. This finding contradicts previous results in the literature. We reconcile the conflicting findings and discuss implications for the design of entrepreneurship courses. |
| Keywords: | Entrepreneurship education; entrepreneurial intention; theory of planned behavior; structural equation models; two stage least squares. |
| JEL: | L11 L13 O34 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:msmdpa:12440&r=ent |
| By: | Stuetzer, Michael; Goethner, Maximilian; Cantner, Uwe |
| Abstract: | We analyze longitudinal data on innovative start-up projects and apply Lazear’s jack-of-all-trades theory to investigate the effect of nascent entrepreneurs’ balanced skills on their progress in the venture creation process. Our results suggest that those nascent entrepreneurs who exhibit a sufficiently broad set of skills undertake more gestation activities towards an operational new venture. This supports the notion that a balanced skill set is an important determinant of entrepreneurial market entry. |
| Keywords: | Nascent entrepreneurship; balanced skills; new venture creation |
| JEL: | L26 J24 M13 |
| Date: | 2012–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39115&r=ent |
| By: | Giulia Faggio; Olmo Silva |
| Abstract: | Research on entrepreneurship often uses information on self-employment to proxy for business creation and innovative behaviour. However, little evidence has been collected on the link between these measures. In this paper, we use data from the UK Labour Force Survey (LFS) combined with data from the Business Structure Database (BSD), and the Community Innovation Survey (CIS) to study the relation between self-employment, business creation and innovation. In order to do so, we aggregate individual and firm-level data at the Travel-to-Work Area (TTWA) and investigate how the incidence of self-employment correlates with the density of business start-ups and innovative firms. Our results show that in urban areas a higher incidence of self-employment positively and strongly correlates with more business creation and innovation, but this is not true for rural areas. Further analysis suggests that this urban/rural divide is related to lack of employment opportunities in rural areas, which might push some workers into self-employment as a last resort option. |
| Keywords: | Entrepreneurship, self-employment, spatial distribution |
| JEL: | L26 J21 R12 R23 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0109&r=ent |
| By: | ITO Keiko; KATO Masatoshi |
| Abstract: | Using establishment-level data in Japan, we examine the effects of new business entries on the probability of incumbents exiting the market. In particular, we estimate how the effects vary depending on the size of both the entrants and incumbents, which has not been explored in the literature.<br />We find that while new business entries increase the probability that incumbents will exit, the effect differs significantly across sectors and depends on entrant and incumbent size. Although small establishments are the most likely to be driven out by new entries in all sectors, large incumbents are not always the most competitive, and, in the case of the tradable services sector, medium-sized establishments are the least likely to be affected by new entries.<br />Moreover, our simple regression analysis shows a positive relationship between entry rates and employment growth in a region. New entries may promote resource reallocation and stimulate regional economies, possibly resulting in regional employment growth. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:12034&r=ent |
| By: | Nunoo, Jacob; Andoh, Francis K. |
| Abstract: | Promoting a dynamic operating environment for Small Medium scale enterprises (SMEs) is seen as a priority amongst economic development goals, in both developed and emerging economies. SMEs are a primary driver for job creation and GDP growth. They greatly contribute to economic diversification and social stability and they play an important role for private sector development. It must be emphasized, that the utilization of these financial products does not only promote the growth of the SMEs themselves but also their active participation in the financial services market leads to financial development which is widely recognized as an important determinant of economic growth and also recognized as important for enhancing the social and economic impact of the financial sector. In the past, SMEs, particularly, in developing countries, lacked access to financial products and services. The SME market was perceived by banks as risky, costly, and difficult to serve. However, with the advances in information and communications technology, the cost differential of serving poor customers has fallen and banks now perceive significant opportunities in the SME sector. Survey data from multiple studies show that banks have begun to target SMEs as a profitable segment. For example, a recent survey of 91 banks in 45developed and developing countries – Bank Financing for SMEs around the World – found that these banks overwhelmingly perceived the SME sector as a large market with good prospects. There exists an array of financial products - microcredit, savings, and loans, insurance, mutual funds, etc. – in both the formal and informal sectors in Ghana. Opportunities to utilize these financial services are now plentiful than about a decade ago. However, available studies have shown that about 44% of Ghanaians are financially excluded and have/use no financial products. This paper uses a direct measure of financial knowledge to empirically investigate the linkage between financial literacy and utilization of financial services by SMEs. However, since people’s level of knowledge can improve through utilization of financial service, we establish a bi-causality problem. In the analysis, two equations were estimated: (1) financial literacy level, and (2) utilization of financial service which includes financial literacy as an endogenous variable. The equation determining the level of financial literacy was estimated using the OLS while the equation for the utilisation of financial service was estimated using logistic regression. The IV method was used to correct for the problem of endogeneity. Overall, the results show that there was modest level of financial literacy among small and medium entrepreneurs in Ghana. Moreover, it was discovered that the better and more financially literate entrepreneurs were more likely to utilize financial service. The most commonly utilized financial service was operating a bank account. This has important policy implication. Finally, the instrument for financial literacy, recipient of financial education, also had positive relationship with utilization of financial service. |
| Keywords: | small and medium scale enterprises, financial literacy, utilization, Agricultural Finance, Financial Economics, Research Methods/ Statistical Methods, Q14, M20, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:123418&r=ent |
| By: | Serafeim Tsoukas (University of Nottingham and Hong Kong Institute for Monetary Research) |
| Abstract: | Using a panel of five Asian economies - Indonesia, Korea, Malaysia, Singapore and Thailand - over the period 1995-2007 we analyze the links between firm survival and financial development. We find that traditionally used measures of financial development play an important role in influencing firm survival. When stock markets become larger or more liquid firms' survival chances improve. On the contrary, we show that higher levels of financial intermediation can increase firm failures. We also find that the beneficial effects of stock market development are more pronounced during the later years of our sample, while the adverse effects of bank intermediation have declined over time. Finally, large firms are more likely to benefit from developments in financial markets compared to small firms. |
| Keywords: | Firm Survival, Firm-Specific Characteristics, Financial Development |
| JEL: | E44 D92 L20 O10 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:hkm:wpaper:142012&r=ent |
| By: | Rafael Boix; Jose-Luis Hervas-Oliver; Blanca De Miguel-Molina |
| Abstract: | What makes special the geography of the clusters of creative industries (CI)? This paper considers the symbolic knowledge-base and the preference for location in urban spaces observed in those clusters. The study avoids classic research designs based on synthetic knowledge bases and regional-based administrative-constrained design, using instead micro-data (550,000 firms in creative industries) and geo-statistical algorithms. Results contribute to the economic geography by: (i) providing a specific observation of the spatial dimension (where) in the cluster theory; (ii) identifying and mapping the clusters of CI in Europe; (iii) exploring particular forms of agglomeration and co-location (urban and non-urban) followed by clusters of CI. Results present implications for scholars and policy-makers suggesting to stress the articulation of within and between-cluster policy strategies for existing clusters rather than fostering the generation of new clusters. |
| Keywords: | creative industries, clusters, symbolic knowledge, micro-data, geolocalization |
| JEL: | R12 C49 Z0 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1209&r=ent |
| By: | MORIKAWA Masayuki |
| Abstract: | This paper, using Japanese firm level data, empirically analyzes the credit constraints in intangible investments. We estimate investment functions where cash flow is used as a key explanatory variable. We then observe differences in the sensitivity of investments to cash flow by the type of assets, industry, firm size, and firm age. According to the estimation results, investments in intangible assets are more sensitive to internal capital compared with investments in tangible assets, which suggest the existence of market failure in the financial markets. This market failure is more serious for small- and medium-sized enterprises (SMEs) and young firms. On the other hand, actual policies to promote investments are concentrated on tangible assets with the exception of R&D investment. The analysis of this paper suggests that investment tax credits and financial support for SMEs should focus more on intangible investments. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:12016&r=ent |